PHPX promises to give overseas Filipinos greater control over their finances by cutting out intermediaries and reducing reliance on traditional remittance methods.
A number of Filipino banks, including UnionBank, Rizal Commercial Banking Corporation (RCBC), Cantilan Bank, and Rural Bank of Guinobatan, plan to launch PHPX, a peso-backed stablecoin, on the Hedera distributed ledger technology (DLT) network later this year, as per Ledger Insights. Developed with Singapore-based Just Finance, PHPX aims to enhance cross-border payments and establish a foundation for multi-currency stablecoin exchanges.
UnionBank’s fintech arm, UBX, has utilised blockchain since 2018, operating a token-based clearing system for rural banks. However, PHPX represents a shift towards public exchangeable stablecoins, supporting broader financial applications beyond closed-loop networks.
Improving remittances is a key priority. With the Philippines receiving US $40 billion in remittances in 2024, representing 10% of its GDP, PHPX aims to provide faster, real-time payments. Overseas workers could directly pay for expenses like tuition and insurance, reducing reliance on intermediaries. Transactions will abstract PHPX in the backend for user-friendly fund transfers.
The project also envisions a multi-currency stablecoin exchange to enable cross-border payments. Liquidity providers, including banks, will facilitate swaps between PHPX and foreign currency stablecoins like USD and SGD.
PHPX’s design prioritises security and compliance, with reserves held in segregated trust accounts backed by government bonds. The system aligns with international regulations, including the EU’s MiCAR, ensuring global and local regulatory approval.
The Bangko Sentral ng Pilipinas (BSP) is expected to greenlight the launch, potentially between May and July. While PHPX will initially focus on remittances, plans include expanding its use for trade payments and point-of-sale applications, unlocking broader financial opportunities.
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